According to the latest report of Dawan News, the United States recently imposed sanctions on nearly 300 entities and individuals, including 20 companies located in Chinese mainland and Hong Kong, on suspicion of "supporting Russia's military industry and energy development."
In this regard, He Yadong, spokesman of the Ministry of Commerce, strongly stated that the United States should immediately stop its unreasonable suppression of Chinese enterprises, and China will take all necessary measures to safeguard the legitimate rights and interests of its own enterprises.
With Blinken leaving Beijing, the Biden administration has yet to roll out a new large-scale sanctions strategy against China.
Domestically, however, how to deal with China has become a hot topic.
Some media pointed out that the United States is hesitant to impose sanctions on China, which may have caused the United States to miss a strategic opportunity.
Some experts believe that if China is excluded from the dollar system, China's import and export trade may be seriously affected. At the same time, however, Chinese banks have become an important player in the global financial markets.
At present, the total size of US debt has exceeded 34.5 trillion US dollars, accounting for 148% of US GDP.
If the U.S. debt remains high for a long time, the U.S. ability to service its debt will face huge risks. The United States has tried to follow the example of 2008 in the hope that China will once again massively increase its holdings of U.S. debt in order to maintain its financial hegemony.
But in fact, China has continuously reduced its holdings of US debt at the beginning of this year, reaching a total of nearly $40 billion.
It is worth noting that China has reduced its holdings of US debt by nearly 50% from its peak in recent years, which is quite a reduction compared to other countries.
At the same time, President Biden is optimistic about the U.S. economy and has touted the resilience and development potential of the U.S. economy on several occasions.
However, as the size of the US Treasury continues to ballooze, global investors have serious concerns about the ability of the US to pay its debts.
Elon Musk, the world's richest man, recently warned that if the US government does not take effective measures to control the size of the national debt, the value of the dollar will be seriously threatened.
In addition, the Fed has found itself in a dilemma as it faces slowing economic growth and inflationary pressures.
The United States abused its position as a dollar and printed a large number of dollars, leading to an increase in global inflation.
The interest rate hike to attract capital backflow has further exacerbated the problem of currency depreciation and capital outflow in various countries, and has had a serious impact on the global economy.
Now, the United States has been slow to cut interest rates in an attempt to create a global financial storm in order to maintain the hegemony of the dollar. This approach has caused a global outcry and calls for the sale of US bonds.
When it comes to the US debt problem, we have to pay attention to its staggering size.
At present, the total US debt has reached $35 trillion and is expected to continue to rise in the future. This huge debt burden has brought great hidden dangers to the subsequent development of the United States.
At the same time, the U.S. has failed to grow in tax revenues, making the U.S. debt problem even more severe.
In the face of the debt crisis, the United States has two possible ways out: one is to sell assets and grasp the wealth distribution power of the technological revolution to dilute debt; The second is to wage war to directly forgive debts.
However, no matter which path is chosen, America's allies can fall prey.
In addition, in addition to the national debt problem, the federal government debt in the United States has grown to alarming levels, which has further exacerbated the debt crisis in the United States.
In this context, Dr. Cai, a world-renowned financial expert, pointed out that the continuous rise in U.S. bond interest will bring an unbearable burden to any country in the world.
And with the gradual tightening of dollar liquidity, the US economy is also facing the risk of a sharp recession. Judging from the latest economic data, the growth rate of the US economy has shown signs of slowing, and problems such as consumption stalling and rising inflationary pressures are beginning to appear.
The Fed's policy shift is a response to economic realities.
As the economy recovers and inflationary pressures rise, the Fed must shift from a buyer to a seller role to reclaim excess liquidity in the market.
However, this policy adjustment has also brought new challenges and conflicts.
At the same time, with the release of CPI data, the US inflation problem has not eased, but has rebounded month-on-month, which means that the US may be forced to postpone the rate cut to maintain high interest rates, which is the lifeline of US bonds.
Musk's warning is not untargeted, and there is indeed a risk of a thunderstorm in US Treasury bonds, which could be devastating to the entire US economy.
With the US national debt as high as $35 trillion, the federal government is still borrowing money to survive, and the annual fiscal revenue is not enough to cover expenditures, and there is no extra money to pay off the debt, not to mention that the debt itself continues to grow, and if this trend continues, the US debt will inevitably collapse catastrophically.
In response to the crisis, congressional policymakers have proposed a plan to prioritize certain debt payments to major creditors such as China and Japan and some Wall Street institutions, or mint $1 trillion worth of platinum coins to repay debts, so as to ensure the solvency of the United States and continue the credibility and dominance of the dollar and U.S. Treasury bonds.
However, the feasibility and practical effectiveness of this approach remain to be seen.
Since the second half of 2022, China has continued to sell US bonds, and the scale of its holdings has been reduced to the lowest level in nearly 14 years.
Although China's holdings of U.S. Treasuries fluctuated in the months that followed, they remained on a downward trend overall.
At the same time, international investors such as Japan and Europe continue to buy U.S. bonds because of trade surpluses and low yields on domestic bonds.
The continued interest rate hikes of the US dollar have put depreciation pressure on many Asian currencies.
The currencies of Thailand, Indonesia, Vietnam and the Philippines have all depreciated to varying degrees, while the yen and won have also been affected.
Affected by the depreciation of the yen, Warren Buffett's Berkshire Hathaway has made profits from various aspects such as interest rate differential income, exchange rate income and dividend income by issuing yen bonds and accurately judging the depreciation tide of the yen.
This reflects the keen insight and flexible response of international capital to the U.S. economy and the U.S. dollar.
Warren Buffett has shown great confidence in the face of the problems of US debt and the dollar. He believes that US Treasuries will be acceptable for a long time because there are not many alternatives.
He also pointed out that the question is not the amount of US debt, but whether inflation threatens the structure of the global economy. However, Buffett's confidence does not overshadow the serious challenges facing US Treasuries and the US dollar.
With the changing global economic landscape and the relative decline in the strength of the U.S. economy, the status of the U.S. dollar and the sustainability of U.S. debt are under increasing pressure.
At the same time, competition in the technology sector is becoming increasingly fierce. The underperformance of tech giants such as Tesla and Intel underscores the challenges facing US tech hegemony.
The rapid development of China's technology and the interception of US capital have affected the repatriation of the US dollar, further exacerbating the depreciation pressure on the US dollar.
As a result, the United States is not only faced with the problem of harvesting global wealth, but also with the risk of a significant decline in the value of the dollar. In the coming days, the possibility of the "three killings of stocks and bonds" in the United States is not impossible.